What is Pixelworks's latest dividend and current dividend yield?

What guidance did Pixelworks's management provide for the next earnings period?

What were the key takeaways from Pixelworks’s earnings call?

What is the revenue and EPS growth rate for Pixelworks year over year?

What is the market's earnings forecast for Pixelworks next quarter?

What is Pixelworks's gross profit margin?

What factors drove the changes in Pixelworks's revenue and profit?

Did Pixelworks beat or miss consensus estimates last quarter?

- **$50-60M Net Proceeds**: Sale of Shanghai subsidiary to VeriSilicon will provide liquidity to pivot to a technology licensing business.
- **TrueCut Motion Momentum**: Credited in four major theatrical releases this quarter, with consumer device licensing discussions nearing completion.
- **Cost Efficiency**: Sequential cash burn reduction to $3 million highlights operational turnaround.
- **Geopolitical Risk Mitigation**: Exit of China-focused semiconductor business reduces exposure to regulatory headwinds.

**【CEO Summary Section】**
- **Proposed Shanghai Subsidiary Sale**: Pixelworks signed a definitive agreement to sell its 78% stake in Pixelworks Shanghai to VeriSilicon for $133 million (RMB 950 million). Net proceeds to Pixelworks are expected to be $50-60 million after taxes, minority obligations, and transaction costs.
- **Transaction Rationale**: The sale aims to unlock value, reduce geopolitical risks in China, and pivot to a pure-play technology licensing business. Proceeds will fund growth in TrueCut Motion and other IP-based solutions.
- **Q3 Financial Highlights**: Revenue of $8.8 million (up 6% sequentially), gross margin of 49.9%, and operating expenses down $3.1 million YoY. Cash burn reduced to $3 million Q3 vs. $7.8 million YoY.
- **TrueCut Motion Progress**: Credited in three new theatrical releases (Jurassic World: Rebirth, The Bad Guys 2, Nobody 2) and set to launch in Wicked For Good on November 21. In late-stage discussions with a strategic partner for consumer device licensing.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: GAAP net loss of $3.8 million (-$0.69 per share), improved from $5.3 million (-$1.00 per share) in Q2. Adjusted EBITDA negative $3.6 million, up from -$4.3 million in Q2.
- **Balance Sheet Strength**: Post-Q3, cash balance was $22 million (half tied to Shanghai subsidiary). Recent $10 million cash inflow from a registered direct offering and patent sale.
- **No Q4 Guidance**: With the Shanghai sale pending, management declined to provide forward-looking financials.

**【Q&A Key Highlights】**
- **Geopolitical Impact**: CEO noted increasing pressure on foreign semiconductor companies in China, with some customers prioritizing local suppliers. However, the sale announcement has already generated new business opportunities for the subsidiary.
- **Transaction Complexity**: 78% ownership sale includes redeeming minority investors who previously held preferred return rights. Withholding taxes and transaction costs reduce net proceeds to $50-60 million.
- **TrueCut Licensing Strategy**: Post-transaction, focus will shift to monetizing TrueCut Motion through device licensing agreements. Late-stage certification with a major ecosystem partner could accelerate consumer adoption.


Pixelworks, Inc. (PXLW) Q3 2025 Earnings Call Transcript

- **Revenue Recovery**: Q2 revenue up 17% sequentially to $8.3M, driven by home/enterprise segment with new projector SoC.
- **Gross Margin Expansion**: 46% gross margin (vs. 51% YoY) due to yield improvements, with Q3 margin expected to improve to 47%-49%.
- **TrueCut Motion Growth**: Format now available on Apple Vision Pro and streaming services, with $4B+ box office success for supported titles.
- **Mobile Strategy Shift**: Transitioning to custom ASICs for differentiation in premium phones, with realme P4 series launch as key milestone.
- **Strategic Review Risk**: Uncertainty around Shanghai subsidiary transaction outcome and potential business model changes.
- **Liquidity Concerns**: Cash balance down to $14.3M, with Q3 EPS loss expected to widen to -$0.70 to -$1.02.

**【CEO Summary Section】**
- **Revenue Growth and Margin Improvement**: Q2 2025 revenue of $8.3M, up 17% sequentially, driven by home/enterprise (74% of revenue) with a new projector SoC ramp. Gross margin improved to 46% due to better-than-expected yields. Operating expenses decreased $3M YoY to $9.7M.
- **TrueCut Motion Momentum**: 3 new theatrical releases (Jurassic World: Rebirth, The Bad Guys 2, Nobody 2) and Avatar: The Way of Water re-release in China. TrueCut Motion now available on Apple Vision Pro and streaming services, with $4B+ box office success for titles using the format.
- **Mobile Strategy**: 
  - **Low-Cost Solution**: New architecture targeting sub-$350 smartphones with improved GPU performance.
  - **Premium Segment**: X7/X8 processors in realme P4 series (India launch) enable 144Hz gaming and 1.5K upscaling. Mobile revenue remains constrained but expected to recover with new designs.
- **Adjacent Opportunities**: 
  - **Transcoding**: $1.6M in Q2 subsidies; one customer PO for end-of-life chips to be fulfilled in Q4.
  - **ASIC/IP Licensing**: Pipeline with 3 Tier 1 China and 1 North America companies; potential in AR/VR, tablets, and monitors.
  - **Strategic Review**: Shanghai subsidiary review progressing with 3 potential buyers; decision expected by Q3 end with aim to achieve profitability by Q4.

**【CFO Financial Commentary】**
- **Q2 Financials**: 
  - GAAP net loss: $5.3M (-$1.00 EPS)
  - Non-GAAP gross margin: 46% (vs. 51% YoY)
  - Adjusted EBITDA: -$4.3M (improvement from -$7.0M YoY)
  - Cash: $14.3M (down $4.2M QoQ)
- **Q3 Guidance**: 
  - Revenue: $8.5M-$9.5M
  - Gross margin: 47%-49%
  - EPS: -$0.70 to -$1.02

**【Q&A Highlights】**
- **Custom ASIC Demand**: Chinese OEMs seeking differentiation in premium phones (e.g., Xiaomi's 4 custom chips) through co-developed solutions rather than standard merchant products.
- **New SoC Impact**: Home/enterprise growth driven by higher ASP new SoC ramp, but sustainability dependent on end-market demand.
- **Strategic Review Uncertainty**: Potential changes to business model post-Shanghai subsidiary transaction, though specifics remain unclear.
- **Transcoding Revenue Timing**: One-time order revenue to be recognized in Q4, but magnitude not disclosed.


Pixelworks, Inc. (PXLW) Q2 2025 Earnings Call Transcript

- **Revenue Challenges**: Q1 2025 revenue down 24% YoY to $7.1 million, driven by home/enterprise seasonality, but mobile growth offset part of decline.
- **Cost Efficiency**: Operating expenses reduced $2.2 million YoY, with $10 million annual savings expected. Shanghai subsidiary targeting $7 million/Q OpEx for profitability.
- **TrueCut Momentum**: 10+ films in pipeline, strategic post-production partnership, and certification testing with a global device brand for home entertainment.
- **Mobile Strategy**: Focused on low-cost graphics accelerators for mid/entry-level phones, with potential 2025 launches and ASPs under $2.
- **Adjacent Growth**: Design services (potential $10-20 million projects) and legacy chip production could provide near-term upside.

**【CEO Summary Section】**
- Q1 2025 revenue was $7.1 million, down 24% YoY due to seasonal decline in home/enterprise business, partially offset by mobile growth. Mobile revenue increased sequentially, driven by shipments of visual processors for existing smartphone models.
- Operating expenses decreased $2.2 million YoY to $10.4 million, reflecting cost reduction actions. Total 2025 operating expense reduction expected to reach $10 million.
- Pixelworks Shanghai subsidiary (semiconductor business) is on track for Q3/Q4 profitability, with OpEx targeting $7 million/Q. Revenue mix includes mobile, home/enterprise, IP licensing, and design services.
- TrueCut Motion platform progress: 10+ films in pipeline for 2025, strategic partnership with a major post-production house, and certification testing completed with a global device brand for home entertainment devices.
- Mobile strategy focuses on low-cost graphics accelerator for mid/entry-level smartphones, with co-development programs targeting launches in late 2025.
- Adjacent revenue opportunities include ASIC design services (potential $10-20 million projects), IP licensing, and limited production of legacy transcoding chips for prior customers.

**【CFO Financial Commentary】**
- Q1 2025 GAAP net loss: $6.5 million (-$0.11/share) vs. Q4 2024: $4.3 million (-$0.07/share). Non-GAAP gross margin: 49.9% (down from 54.8% Q4 2024 due to product mix).
- Q2 2025 guidance: Revenue $8-9 million, non-GAAP gross margin 41-43% (impacted by new projector chip ramp), operating expenses $9-10 million, non-GAAP EPS (-$0.11 to -$0.08).
- Cash balance: $18.5 million (down from $23.6 million Q4 2024) due to cost preservation efforts.

**【Q&A Highlights】**
- **Profitability Path**: Shanghai subsidiary needs $7 million/Q OpEx to reach profitability. Mobile revenue expected to be similar to 2024 levels, with ASPs under $2 for low-end solutions.
- **TrueCut Device Partners**: Discussions with non-Chinese brands for home entertainment devices. Focus on North America/Europe for ecosystem expansion.
- **Design Services**: Potential $10-20 million projects with large OEMs for custom ASICs. First engagement could contribute Q3 2025 revenue.
- **Mobile Growth**: New graphics accelerator solution for mid/entry-level phones targets 2025 launches. Gross margin challenges from projector chip ramp, but mobile margins expected to improve with scale.


Pixelworks, Inc. (PXLW) Q1 2025 Earnings Call Transcript

- **Revenue Resilience**: Q4 2024 home and enterprise revenue up sequentially, offsetting mobile decline. 2025 mobile recovery expected to drive top-line growth.
- **TrueCut Breakthrough**: 5+ major films committed for 2025, with potential for 10+ by year-end. Device brand partnerships could unlock $10M+ in adjacent revenue.
- **Profitability Path**: Shanghai subsidiary on track for 2025 profitability with $10M+ cost reductions and legacy chip production upside. Parent company nearing breakeven with strategic review progress.
- **Gross Margin Strength**: Q4 2024 non-GAAP gross margin 54.8%, up 1,000bps YoY, reflecting improved product mix and cost control.


**【CEO Summary Section】**
- **Revenue Performance**: Q4 2024 revenue of $9.1 million, down from $9.5 million in Q3 and $20.1 million in Q4 2023, driven by mobile headwinds. Home and enterprise revenue grew sequentially, offsetting mobile decline.
- **TrueCut Motion Momentum**: 5+ major theatrical releases committed for 2025, targeting 10+ by year-end. Active discussions with 3 major device brands for TrueCut integration in future devices.
- **Shanghai Subsidiary Strategy**: New ASIC design services and IP licensing opportunities expected to contribute $10M+ in 2025. Potential legacy transcoding chip production could add $10M+ in H2 2025 revenue. Cost reductions targeting 10% YoY operating expense decline.
- **Mobile Recovery Outlook**: Anticipate mobile revenue growth in 2025, with Q4 2025 revenue exceeding 2024 levels. New X5 derivative processor targeting mid-tier smartphones expected to ramp in Q2 2025.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: Q4 2024 non-GAAP gross margin 54.8%, up 350bps QoQ and 1,000bps YoY, driven by favorable product mix.
- **Cost Efficiency**: Q4 2024 non-GAAP operating expenses $10.4 million, down 16% YoY. Full-year 2025 operating expenses expected to decrease $10 million YoY.
- **Subsidy Impact**: $1.8 million in China Little Giant subsidies recognized in Q4, reducing net loss by $0.05 per share.
- **Cash Position**: $23.6 million in cash at end of Q4, with focus on preserving liquidity and reducing cash burn in 2025.

**【Q&A Highlights】**
- **Mobile Recovery Timing**: Mobile revenue growth expected to accelerate in H2 2025, with potential for 2025 revenue similar to 2023 levels.
- **TrueCut Tipping Point**: 10+ tentpole films in premium theaters could drive streaming services and device manufacturers to adopt TrueCut technology.
- **Strategic Review Update**: No definitive timeline for Shanghai subsidiary strategic review, but progress with multiple parties in due diligence.
- **Projector Business Outlook**: 2025 projector revenue expected to match 2024 levels, with new co-developed SoC ramping gradually.


PXLW

PXLW fundamentals

Earnings Call

You can ask Aime